As an engineer and engineer, he Ran a thriving family business in Canada for years, in its peak using over 100 workers, until economical upheaval ruined the profitability of North American manufacturing. Driven out of business, he chose to study economics… to detect the origin of this unhappy circumstance.
The halving takes effect when the Number of ‘Bitcoins’ awarded to miners after their successful development of this new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It’s not a new thing, however it does have a lasting impact and it is not yet known if it’s good or bad to ‘Bitcoin’.
Okay so, let’s say that the regulators, FBI, or another branch of government interferes and files charges – should they record criminal charges that someone defrauded someone else then just how much defrauding was demanded? In the event the government law and justice department put a dollar amount number to this, they are inadvertently agreeing that the digital money is actual, and it’s a value, consequently, acknowledging it. When they don’t get involved, then any fraud which might or might not have happened sets the whole notion back a long way, and the media will continue to drive down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for the authorities, authorities, and enforcement folks, and they cannot look another way or deny this trend any longer. Could it be time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it is controlled credibility is given to the notion, but his electronic currency theory could also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there might be hell to pay for this as well. Can the international economy handle that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either break or make this new change in how we view monetary price, riches, online transactions and how the actual world will mind-meld to our prospective blurred reality. I simply don’t see many folks thinking here, but everybody should, 1 misstep and we could all be in a world of hurt – all of humankind that is. Please think about all this and consider it. As we have just mentioned, crypto genius australia is something that cannot be dismissed – or at least should never be ignored. No one really can adequately address all the different circumstances that could arise with this particular topic. So we feel this is just an ideal time to take a break and assess what has just been covered. This is significant information that can help you, and there is no questioning that. If you continue, we know you will not be disappointed with what we have to offer in this article.
Bitcoin is further away from being The numeraire; not just can it be simply a number, much as Fiat… but its worth is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even though it succeeds to replace the Dollar as the accepted ‘numeraire’, it can not possess an intrinsic measure like Gold has. Gold is exceptional in being measured by a real, unchanging physical quantity. Gold is unique in preserving worth for centuries. Nothing else in reach of humankind has this unique blend of attributes.
In Summary, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its own promise to being cash. Its advantages will also be questionable; the intent would be to limit the ‘mining’ of Bitcoins into 26,000,000 units; that is , the ‘mining’ algorithm gets harder and harder to fix, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this announcement might well be the death knell of Bitcoin; already, some central banks have declared that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘large banks’ seem to be accepting the true worth of the Bitcoin, no? This really means is banks recognize that they could trade Fiat for Bitcoins… and also to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even small change to the Fiat printers; it is roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what practical purpose would they serve?
There would be no Bitcoins left in Circulation; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth could they be used as a medium of exchange? And, what would the issuers of Bitcoin potentially do to defend against such a fate? Change the algorithm and boost the 26 million into… 52 million? To 104 million? Join the Fiat printing parade? But then, from the quantity theory of money, Bitcoin would begin to eliminate value, just as Fiat allegedly loses value throughout ‘over-printing’…
We come to the key dilemma; why hunt To get a ‘new money’ when we already have the very best cash, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender legislation? Each of the above. The answer isn’t in a new sort of money, but in a new social structure, one without Fiat, with no Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is achieved, Gold will restart its ancient and vital role as honest money… and not a moment before.
Rudy J. Fritsch was born in Hungary In 1947, and fled Socialist tyranny during the Hungarian Revolution of 1956. His family had lived through WWII and the consequent Hungarian hyperinflation, thus he’s intimate experience with financial devastation.